An exploration well at the offshore Cosmopolitan prospect has encountered oil at a shallower interval than expected, according to operator Buccaneer Energy Ltd.

The Cosmopolitan No. 1 encountered oil and condensate at 5,600 feet, in the Lower Tyonek formation, according to the Australian independent. Because of the unexpected discovery, Buccaneer set intermediate casing about 400 feet higher than it had originally planned and is now preparing to run wire line logs, test pressure and take core samples.

The well also encountered gas shows in the Tyonek, as expected.

As work proceeds in Alaska, Buccaneer is preparing for a meeting on July 2 where shareholders will decide whether to retain the existing board or replace it with a board selected by two Hong Kong-based shareholders concerned about company performance.

—Eric Lidji

See story in June 30 issue, available online at 11 a.m. Friday June 28 at www.PetroleumNews.com